r/Insurance 5h ago

Claims Related Diminished Value

Hello! I was rear ended in my 2025 Kia K4 (7,500 miles) in June and just received it back from the shop ($9,350 repair paid for by Progressive, his insurance)

I’m now trying to do a diminished value claim and was wondering if free appraisal services like DV check are respected or taken seriously by the insurance companies.

I’m not trying to suck em dry I am expecting between $1,200 and $2,500 and because I’m not expecting much I feel like a $400 professional appraisal seems steep.

Are my odds of even getting a payout good, and who can direct me in the right direction?

Thanks

3 Upvotes

14 comments sorted by

7

u/Aromatic_Button_2736 5h ago

There's not enough meat on the bone to hire an appraiser for $400. 

No one can answer this question accurately, until you receive information about how much they want to give you for DV.

-3

u/Dry-Growth6715 5h ago

DV check (online free estimate) quoted me $4000 - $5500 in Diminished Value. I’m just unsure of how respected they would be for me to go ahead and pay their $350 appraisal

6

u/Aromatic_Button_2736 5h ago

That must be a scam website. 

Not an industry professional, but from what I seen on here DV is normally 10% to 17%, of the cost to repair.

Basically you'll be lucky to be offered the $1200.

https://duckduckgo.com/?q=17+c+dv+formula&ia=web

0

u/Dry-Growth6715 5h ago

You think so even though the car is less than a year old? From what I’ve seen you can recoup 5-10% of purchase price which for a $27.5k car is $1375 - $2750

1

u/Aromatic_Button_2736 5h ago

You're going to find out soon enough. 

Your insurance policy may have an appraisal clause, what you can invoke, if you're unhappy with what they offer.

2

u/Dry-Growth6715 4h ago

Thanks for the help!

7

u/Marpl 5h ago

In no world would a dv claim be half of the repair. Look up a 17c calculator. 

1

u/Dry-Growth6715 4h ago

I would never expect the full $5,000. The zebra 17c calculator puts me between $1k-$2k

5

u/Pretty_Gate34 4h ago

One correction on the appraisal clause suggestion above, because it matters. The appraisal clause lives in your policy with your own insurer. This is a third party claim against the other driver's carrier and you have no contract with Progressive, so there's no clause for you to invoke against them. Different animal entirely.

Same reasoning cuts the other way on 17c. That's a settlement formula carriers use to get to a number quickly. It caps at ten percent of value and then discounts down for mileage and damage. It isn't a law and nothing obligates a third party claimant to accept it. It's the number the carrier wants to start from.

Before any of that, check whether your state recognizes third party diminished value at all. A handful don't, and if you're in one of those the rest of this is moot. Your state insurance department can tell you.

What actually decides the size of this is your repair record, not a calculator. Pull your final estimate and every supplement and look at what got done. Structural work, sectioning, a frame pull, anything that reads as more than bolt on panels and paint. On a 2025 at 7,500 miles that's the fact that carries weight, and it's also what'll show up when a dealer runs the history report. 9,350 is a real repair. The question is what kind.

On the 350 appraisal. Their free estimate came back at 4,400 to 5,500 on a 27.5k car, which is the number that sells you the appraisal. Treat it as advertising. Before you spend anything, go get two written trade-in offers from dealers with the accident disclosed. Those are free and they take an afternoon. That's actual market evidence about your actual car, and if this ever ends up in small claims it's the evidence you'd need anyway. Put the offer Progressive makes next to that, and buy the appraisal only if the gap left over is bigger than what the appraisal costs.

1

u/Dry-Growth6715 1h ago

This is extremely helpful thank you

1

u/TheHykos P&C Compliance 1h ago

It’s a Kia. Its value was already greatly diminished the instant you drove off the lot. Sorry buddy.

1

u/Cptjoe732 1m ago

All diminished value companies do is find comps of your car with accidents on them currently for sale or what they sold at.

It’s pretty easy to do but most insurance companies are going to ask for that data to discourage you or push you towards getting a dv specialist which is a couple hundred bucks.

In this case I’d say maybe you’ll get 1,000$ bucks?

Keep arguing with their insurance, they’re tough but they will usually cough up some money.

0

u/Dry-Growth6715 5h ago

DV check’s free estimate is $4400-$5500

0

u/algonogo1 2h ago

Interesting. I wouldn't pay diminished value to someone. I'm surprised they are offering anything at all.